Saudi Arabia Motor Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.10 Billion |
| Market Size (2029) | USD 11.07 Billion |
| CAGR (2024 - 2029) | 22.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Motor Insurance Market Analysis
The Saudi Arabia Motor Insurance Market size in terms of gross written premiums value is expected to grow from USD 4.10 billion in 2024 to USD 11.07 billion by 2029, at a CAGR of 22% during the forecast period (2024-2029).
COVID-19 had a significant impact on Saudi Arabia's financial services industry. However, the banking and insurance sectors have proven resilient this year. Insurance is a fast-growing industry in Saudi Arabia. This growth is expected to continue as the population expands and more ex-pats relocate to the country. The motor insurance premium volume has grown from 2020 to 2021.
There are 34 Islamic insurance cooperatives in Saudi Arabia. There are also larger international companies that offer policies, including health insurance and life insurance. Tawuniya (national) and BUPA (international) are the two biggest firms by market share.
Saudi Arabia Motor Insurance Market Trends
This section covers the major market trends shaping the Saudi Arabia Motor Insurance Market according to our research experts:
Growing Demand for Passenger Cars is Surging the Growth of the Market
Saudi Arabia's motor vehicle sales of passenger cars were reported at thousands of units in June 2021, recording a decrease from the previous number of thousand units for December 2020. Saudi Arabia's motor vehicle sales recorded fewer units in December 2020 than the previous year's units.
Saudi Arabia's motor vehicle sales are updated yearly, available from 2005 to 2020. The center estimated that Saudi Arabia would acquire some percent of car sales in the Gulf Cooperation Council countries by 2025, out of a total market of million cars, including electric vehicles.
Insurance Density has Potential to Increase
Insurance density can increase in the coming year due to a recovery in the economy and an increase in GDP (Gross Domestic Product) per capita income. The insurance industry is expected to grow in the coming years. Government initiatives are likely to boost the insurance industry by implementing new regulations and economic policies aimed at boosting consumer spending.
The demand for insurance in Saudi Arabia is still primarily driven by government legislation and the consumer penetration strategies of major insurance players. Recently, the digital platforms through which products and services are provided have been on the rise.
A higher number of motor insurance policies are sold online. However, so far, this agility has been witnessed more among the larger insurance players. Digital platforms, when adequately designed and when taking into account the target market's needs, are certainly beneficial; they allow insurers to easily access large pools of new customers whose demands and needs are aligned with the relevant product offer. They can also lower the costs of distribution.
Saudi Arabia Motor Insurance Industry Overview
The report covers the major players operating in the Saudi Arabian Motor Insurance Market. The market is moderately consolidated, and it is expected to grow during the forecast period due to economic recovery and many other factors.
Saudi Arabia Motor Insurance Market Leaders
TAWUNIYA
REZAYAT GROUP
AL RAJHI COMPANY FOR COOPERATIVE INSURANCE
THE MEDITERRANEAN AND GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANY
AXA COOPERATIVE INSURANCE CO
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Motor Insurance Market News
- May 2022: RSA Middle East, a leading provider of general insurance services in the region, entered into a 5-year distribution agreement with Emirates NBD, a leading banking group in the Middle East, North Africa, and Turkey (MENAT) region, to provide world-class general insurance solutions.
- Mar 2022: Policybazaar.ae, Saudi's one-stop destination for online insurance and financial products marketplace, announced a strategic partnership with Cars24, a well-known automobile-focused e-commerce platform for pre-owned vehicles. This is a first-of-its-kind digital partnership that will revolutionize customer experience with an end-to-end digital insurance purchase and issuance process offering customers convenience and transparency.
Saudi Arabia Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Regulatory Landscape and Various Industry Policies Guiding The Market
4.6 Impact of technology and innovation in the market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Insurance Type
5.1.1 Third Party Liability
5.1.2 Comprehensive
5.2 By Distribution Channel
5.2.1 Agents
5.2.2 Brokers
5.2.3 Banks
5.2.4 Online
5.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 TAWUNIYA
6.2.2 REZAYAT GROUP
6.2.3 AL RAJHI COMPANY FOR COOPERATIVE INSURANCE
6.2.4 THE MEDITERRANEAN AND GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANY
6.2.5 AXA COOPERATIVE INSURANCE CO
6.2.6 WALAA COOPERATIVE INSURANCE COMPANY
6.2.7 TRADE UNION COOPERATIVE INSURANCE CO.
6.2.8 SALAMA COOPERATIVE INSURANCE CO.
6.2.9 SAUDI ARABIAN COOPERATIVE INSURANCE CO.
6.2.10 ALLIANZ SAUDI FRANSI COOPERATIVE INSURANCE COMPANY
6.2.11 SAUDI RE FOR COOPERATIVE REINSURANCE COMPANY*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Saudi Arabia Motor Insurance Industry Segmentation
A vehicle insurance policy is a legally required document provided by an insurance provider to limit public responsibility and safeguard public members from potential road accidents. Every driver who owns a car is required by law to obtain a single automobile insurance coverage.
This report aims to offer a detailed analysis of the Saudi Arabia motor insurance market. It concentrates on the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it focuses on the key players and the competitive landscape in the market.
The Saudi Arabia Motor Insurance Market is segmented by Insurance Type (Third Party Liability and Comprehensive) and Distribution Channel (Agents, Brokers, Banks, Online, and Other Distribution Channels). The report offers the market sizes and forecasts in value (USD million) for all the above segments.
| By Insurance Type | |
| Third Party Liability | |
| Comprehensive |
| By Distribution Channel | |
| Agents | |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
Saudi Arabia Motor Insurance Market Research FAQs
How big is the Saudi Arabia Motor Insurance Market?
The Saudi Arabia Motor Insurance Market size is expected to reach USD 4.10 billion in 2024 and grow at a CAGR of 22% to reach USD 11.07 billion by 2029.
What is the current Saudi Arabia Motor Insurance Market size?
In 2024, the Saudi Arabia Motor Insurance Market size is expected to reach USD 4.10 billion.
Who are the key players in Saudi Arabia Motor Insurance Market?
TAWUNIYA, REZAYAT GROUP, AL RAJHI COMPANY FOR COOPERATIVE INSURANCE, THE MEDITERRANEAN AND GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANY and AXA COOPERATIVE INSURANCE CO are the major companies operating in the Saudi Arabia Motor Insurance Market.
What years does this Saudi Arabia Motor Insurance Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Motor Insurance Market size was estimated at USD 3.36 billion. The report covers the Saudi Arabia Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Motor Insurance Industry Report
Statistics for the 2024 Saudi Arabia Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Motor Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
